Yesterday, the well-known crypto project Uniswap launched its latest open-source protocol version, called UniswapX.
It is a permissionless aggregator that finds the best prices and sources of liquidity for trading across different AMMs.
Much like CoWswap and 1Inch Fusion, Uniswap’s new protocol is expected to greatly enhance the user experience with some very convenient features, all the while keeping unaltered the application interface we all know.
Let’s see together all the details in the news.
The crypto DEX Uniswap launches the UniswapX aggregator
After Uniswap V1, V2 and V3, here is the flagship application for the entire DeFi industry drops another hand grenade and goes on to implement new enhancements on the existing interface.
In detail, UniswapX would be an aggregator of liquidity sources for trading, similar to 1Inch, where users can take advantage of the best prices among different AMMs, enjoying anti-MEV protection and zero-fee on swaps.
Another important feature of this new protocol is the elimination of any kind of commission for the user who fails a transaction.
All orders are supported by the Uniswap Smart Order Router, which groups and selects among the various versions of the protocol the best pool where to draw liquidity for crypto exchanges.
Soon to be added among the features will be the ability to execute cross-chain swaps without the need to pay gas for these kinds of transactions, which are currently somewhat of the Achilles’ heel of decentralized finance.
The wide variety of existing blockchains, and the emergence of new layer 2 infrastructures, have led to an environment in which liquidity is presented in a fragmented manner to traders, who find it difficult to find for each instance of token the most suitable pool to execute a transaction.
With UniswapX, the project team and its founder Hayden Adams hope that this problem can be solved by providing a convenient and cost-effective backbone for executing crypto swaps between different networks without having to go through a bridge.
At the moment the beta version of the new protocol is only available on Ethereum, but in the blog post published on Uniswap’s official website, there is talk of an expansion to other chains soon.
A decentralized protocol with protection against MEV bots
One of the most interesting features of the new protocol of the Uniswap crypto project represents protection against the growing danger of MEV Bots, which now swarm the world of decentralized finance.
MEVs (Maximum Extractable Value) are nothing more than very complex techniques used by certain individuals involved in the process of validating transactions on the Ethereum blockchain, who seek to obtain the maximum value from their transactions.
Going into specifics, these individuals benefit from choosing to include, omit, or reorder certain transactions in a blockchain.
In fact, transactions are not executed randomly or in temporal succession, but are included in a block depending on how it is proposed to a validator.
The person who proposes a lineup of transactions to the validator is the so-called searcher, who, besides earning a small commission for his work, can take advantage of all the effects that are caused in the market by the approval of his version of the block.
Indeed, usually when we talk about MEV attacks, we mean situations in which the searcher gains from these instances:
- arbitraging the price of an asset on different decentralized markets;
- frontrunning or sandwich attacks;
- liquidations of loans in DeFi.
A large number of Mev Bots in the Ethereum ecosystem, brings benefits with it, offering a greater incentive to validators who earn more fees than they would normally get.
However, this also brings inconvenience to the end user, who will have to pay more fees and will sometimes find themselves performing transactions with an unfavorable price.
The Uniswap crypto project hopes to solve this problem with its latest version UniswapX, which by redirecting MEVs manages to offer a competitive price to its audience that will not be trapped in a sandwich attack:
In detail, fillers are encouraged to use private transaction relays and prevent MEV robots from creating unpleasant situations for individuals who simply want to perform a swap.
Crypto Uniswap: analysis of fees and trading volume
Uniswap represents one of the most important decentralized protocols known to crypto and decentralized finance enthusiasts.
Above Uniswap we find only the Lido, Aave, and MakerDAO protocols, fundamental pillars of the DeFi world.
Uniswap is best known for being the most widely used DEX by lovers of decentralized crypto exchanges, as well as for being a protocol that collects a lot of fees.
In fact, the platform is available on 7 different chains and records daily fees in excess of $1 million, even considering that the TVL has declined from the values touched in November 2021.
In particular, at that time Uniswap was earning daily fees of around $6-7 million: in any case, even now the protocol defends itself well and brings home a hefty sum of fees on trades.
In terms of trading volume, Uniswap also performs well with the last seven days seeing crypto trades of $3.69 billion in the V3 version.
According to data from Dune Analytics, the majority of transactions occurred in the WETH-USDC trading pair where $1.59 billion in volume was found, followed by WETH-USDT and the USDC-USDT stablecoin pair with $470 million and $370 million, respectively.
Interestingly, although the WETH-PEPE pair ranks sixth in terms of volume touched in the past seven days, it earns the podium in the pool ranking where Uniswap earned the most fees with $300,000.
Also of note is how the trading of the crypto wstETH has grown quite a bit as interest in liquid staking platforms such as Lido has increased.
For the WETH-wstETH pair, 1,199 trades were executed with a volume of $100 million.